Korean steel exports to US tumble 19 pc in first month under US tariffs

ANN/THE KOREA HERALD – Korea’s steel exports to the United States plunged nearly 19 per cent in March, the first month under a 25 per cent US tariff that took effect on March 12.

According to data from the Korea International Trade Association, steel shipments to the US in March fell by 18.9 per cent on-year to USD341 million, while exports by volume declined by 14.9 per cent to 250,000 metric tons.

The drop coincided with the imposition of US tariffs — 25 per cent on steel and 10 per cent on aluminum – which ended Korea’s tariff exemption under a quota agreement that had allowed an annual 2.63 million tons of steel to be exported tariff-free.

Although tariffs appear to be a contributing factor to the decline, industry insiders caution that it is too early to fully assess the impact of the levies, as the steel trade is influenced by complex dynamics, including long-term contracts, shifting demand and broader economic conditions.

The US tariff measures have prompted Korean steel giants such as Hyundai Steel and Posco to respond to the shifting trade landscape with longer-term strategies.

Earlier this week, Posco reportedly expressed interest in acquiring a stake in Hyundai Steel’s planned USD5.8 billion plant in Louisiana, signaling a rare partnership that could help them navigate protectionist policies and respond more swiftly to global supply chain disruptions.

Despite tariff threats abroad, Korean steelmakers are finding some relief at home with a drop in steel imports from China.

Data from the Korea Iron & Steel Association showed that Korea imported 679,853 tons of Chinese steel in March, a 19.7 per cent decline from 847,265 tons in the same month last year. Korea’s total imports of Chinese steel shrank 19 per cent on-year in the first quarter, down to 1.84 million tons.

The decline comes ahead of a new policy set to impose provisional anti-dumping tariffs of up to 38.02 per cent on Chinese heavy steel plates and hot-rolled steel.

While the tariffs have yet to take effect, industry officials suggest that rising trade barriers and weakening demand may already be discouraging Chinese exporters.

For illustration only. PHOTO: Getty Images via ANN/THE KOREA HERALD

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}